30 Apr 2015
NZD/USD: NZD jawboned and RBNZ dovish
FXStreet (Guatemala) - NZD/USD is currently trading at 0.7600 with a high of 0.7694 and a low of 0.7574.
NZD/USD remans in a consolidated channel at the bottom of the losses from the 0.7680 drop. The latest in news,apart from the US GDP disappointment and turnaround in the greenback that came on the back of the FOMC statement being less dovish than expected, milk price forecasts were cut yesterday and Fonterra sees oversupply in the market further weighing on the bird.
Then we had the RBNZ who left rates steady at 2.5%, as expected overnight. What followed however was the game changer as the Central Ban came across very dovish and jawboned the currency lower while raising the possibility for rate cuts.
Analysts at Brown Brothers Harriman highlighted that Governor Wheeler called the strength in the kiwi "unwelcome" in the context of falling export prices and that a rate cut is possible if conditions warrant, including weaker demand and less inflationary pressures. "The kiwi sold off sharply on the news, but has yet to test its next support level of $0.7557."
NZD/USD remans in a consolidated channel at the bottom of the losses from the 0.7680 drop. The latest in news,apart from the US GDP disappointment and turnaround in the greenback that came on the back of the FOMC statement being less dovish than expected, milk price forecasts were cut yesterday and Fonterra sees oversupply in the market further weighing on the bird.
Then we had the RBNZ who left rates steady at 2.5%, as expected overnight. What followed however was the game changer as the Central Ban came across very dovish and jawboned the currency lower while raising the possibility for rate cuts.
Analysts at Brown Brothers Harriman highlighted that Governor Wheeler called the strength in the kiwi "unwelcome" in the context of falling export prices and that a rate cut is possible if conditions warrant, including weaker demand and less inflationary pressures. "The kiwi sold off sharply on the news, but has yet to test its next support level of $0.7557."